Tokenized RWAs Introduce New Concepts to Global Finance

The convergence of yield, trust, and technology is driving one of the biggest transformations in modern finance: the rise of tokenized real-world assets.   

As per a whitepaper released by Broadridge reporting, tokenization is moving from theory to practice across financial services based on the 2025 Tokenization Survey of 300 institutions in North America and Europe.

Both Alexander Zahnd, CEO of Zilliqa, and Alex Buelau, CPTO and co-founder of Parfin, the developer company behind Rayls, see this as the moment where traditional finance and blockchain finally meet in a meaningful, scalable way.

Yield, trust, infrastructure: New drivers

For Zahnd, the current surge of interest in RWAs stems from “the convergence between yield, trust, and infrastructure.” He explains that tokenization “was an elegant concept held back by missing links in identity, compliance, and custodianship — but those gaps have now been filled.”

With frameworks emerging in Singapore, Switzerland, and the EU under MiCA, regulated digital asset issuance is becoming more practical. Combined with pressure on global interest rates, investors are increasingly seeking alternative yield opportunities in tokenized assets that blend security with innovation.

Both leaders reject the notion that tokenization is just another crypto cycle. Zahnd calls it “the modernization of capital infrastructure,” noting that backend maturity — not just shiny front-end apps -- is driving the shift. “Every financial asset that can be tokenized will eventually be,” he says.

Buelau echoes the sentiment: “This is a structural transformation, not a fad. Tokenization solves deep inefficiencies in legacy finance from slow settlements to fragmented custody and has real staying power with robust infrastructure and evolving regulation.”

Solving the inefficiencies of traditional markets

Zahnd, who spent nearly a decade in traditional finance, has witnessed firsthand the friction of outdated systems. “Collateral still moves on paper, reconciliations and settlements take days, and compliance checks are isolated,” he explains. “Tokenization addresses all of these inefficiencies, translating into lower risk and lower cost for institutions.”

Buelau adds that when combined with privacy and compliance, tokenization “can reduce settlement time, enable fractional liquidity, and cut operational costs,” transforming how regulated actors interact with assets.

Building for institutions first

Institutional participation remains the cornerstone of mainstream adoption.

“We’re primarily building for regulated entities — banks, asset managers, custodians, and exchanges,” says Buelau. Zahnd agrees that institutions are “the first step in proving that the model works,” as they already have the governance and audit frameworks to operate in both traditional and Web3 environments. Once compliance, custody, and identity systems are proven, both leaders see the same infrastructure extending to end users, expanding financial inclusion and accessibility.

Despite rapid technical progress, legal clarity remains the biggest bottleneck. “You can tokenize an asset in minutes,” Zahnd notes, “but a recognized legal entity that issues and redeems it under existing securities law is still required.”

Regulators, however, are becoming more pragmatic. Jurisdictions like Switzerland and Singapore are setting usable precedents instead of waiting for perfection.

“This pragmatic architecture ensures legal clarity and custody controls for institutions,” Buelau says, “while preserving programmability and composability — the core strengths of blockchain.”

Liquidity myth and reality of demand

One persistent misconception is that tokenization automatically increases liquidity. Liquidity only improves if there’s genuine demand for the asset. Tokenization makes assets easier to access, but it doesn’t create market interest by itself.

The real advantage lies in programmable trust — not just digitizing ownership, but creating verifiable, compliant systems that link the legal and digital worlds.